Markup formulas
- Markup % = (price − cost) ÷ cost × 100.
- Selling price = cost × (1 + markup %).
- Margin % = (price − cost) ÷ price × 100.
- Price incl. sales tax = price × (1 + tax rate).
Worked example
An item bought for Rs 1,200 and sold for Rs 1,800 by a GST-registered seller.
- Profit: Rs 600, so markup = 600 ÷ 1,200 = 50%
- Margin: 600 ÷ 1,800 = 33.3%
- Price with 18% GST: 1,800 × 1.18 = Rs 2,124
See your whole-business margin with the profit margin calculator, work out GST with the sales tax calculator, or price for Daraz with the Daraz commission calculator.
Frequently asked questions
How do I calculate markup?
Markup = (selling price − cost) ÷ cost × 100. Buying at Rs 1,200 and selling at Rs 1,800 gives Rs 600 profit, which is a 50% markup.
How do I find the selling price from a markup?
Selling price = cost × (1 + markup). A Rs 1,200 item with a 50% markup sells for Rs 1,800 before tax.
Is markup the same as margin?
No. Markup divides profit by cost; margin divides it by the selling price. A 50% markup is a 33.3% margin, and a 100% markup is a 50% margin.
Should I add 18% sales tax to my price?
Only if you are registered for sales tax. Registered sellers add 18% GST on most goods on top of their price; unregistered small shops do not charge it separately.
What markup do shops in Pakistan use?
It depends on the trade and competition. Wholesalers may work on 5–15%, while clothing, accessories and cosmetics retailers often use 50–100% markup to cover rent, staff and discounts.
Last reviewed: October 2026